Ann: Letter Received From EDF Objecting To DOCA Proposal, page-5

FYI below is the email that I wrote to Matthew Woods earlier today.

Sir,

I refer to your letter of December 5.

As Administrators you have a fiduciary responsibility to preserve and enhance the company assets.

As you are aware Cameco and Kazakhstan have planned to reduce production significantly. These new cutbacks will undoubtedly change the uranium market for the better in terms of reduced supply and increased uranium pricing and will ultimately increase the value of uranium assets everywhere, including Paladin’s assets.

The Independent Expert’s report is now obviously obsolete due to these occurrences. If fact, all metrics (discounted cash flow calculations etc.) used over the last year or so to value the company assets are now out of date and must be revised.

The asset value revisions when factored into the creditor proposal will undoubtedly translate into increased shareholder equity .

I formally ask that you delay all meetings with creditors and proceedings until the asset evaluations have been completed.

As previously mentioned you have a fiduciary responsibility to preserve and enhance the company assets.

We are presently right at the uranium inflection point and for you to enhance asset values all you have to do is simply WAIT.

The market will , on its own, lift values for all stakeholders and will result in a fairer outcome for all.

The large creditors are well aware that the uranium market has bottomed out and is on the upturn and obviously have no interest at all to delay proceedings. That is precisely why CNNC and EDF went through all their manipulations. They saw an opportunity to take over the company at no cost right at the bottom of the cycle.

It is up to you and your team to do the right thing for all stakeholders.

Thanks